Govt efforts will help rupee appreciate against dollar: Piyush Goyal
The minister said that a stable economy will propel India to become one of the top 3 economies in the world.
The minister said that a stable economy will propel India to become one of the top 3 economies in the world.
The US Dollar Index (DXY) has slipped below $100 for the first time after April 2022. When the Dollar Index falls, the Indian rupee appreciates and the dollar weakens, which is leading to increase in fund flows from FIIs and FPIs, SBI Securities said in a report.
The Indian rupee came down against the US dollar on Monday, crossing the Rs 81 mark vis-a-vis a dollar.
The rupee on Monday ended 31 paise lower at 82.78 at the interbank foreign exchange market. The Indian currency opened 10 paise higher at 82.57 on the support of easing crude oil prices and touched a high of 83.01 during intraday trade.
India's foreign exchange reserves during the week that ended on October 14 fell to an over two-year low of USD 528.367 billion, a drop of USD 4.5 billion from the previous week.
Tightening is required on both fronts. How many dollars are moving out/in on trade/current account must be monitored on a daily basis.
Although depreciation of the currency makes imported goods expensive, and foreign travel and fees for studying abroad become costly, it is an erroneous presumption that absence of a strong currency is necessarily bad.
The country's forex reserves consist of FCAs, gold reserves, SDRs, and the country's reserve position with the IMF.
Rupee traded weak as dollar index rallied on the back of US FED tapering bond-buying hints in weeks ahead," said Jateen Trivedi.
Parmar further said that the rupee stayed calmer on Thursday, compared to the prior three days, as participants are cautious ahead of the release.
